After four years of planning, a change in presidential administration that revised program rules, and months of delays, most states have unlocked a portion of funding under a $42.45 billion rural broadband expansion program.

While the lead-up to implementing the Broadband Equity, Access, and Deployment (BEAD) program has been long, state officials and industry analysts say it pales in comparison to the work required to turn plans into functioning networks.

States have six months to finalize contracts with participating internet service providers and complete required environmental and historic reviews, before construction can begin. Some expect projects to break ground as early as the second half of this year.

Still, major questions remain, including how more than half the program’s funding will be used.

What Happens to the $22 Billion in Remaining Funds?

Trimmed from states’ initial deployment plans, the U.S. Commerce Department has set aside roughly $22 billion for so-called “non-deployment” uses. Some lawmakers referred to the reserve as federal “savings.” But the Commerce Department and its National Telecommunications and Information Administration (NTIA), which oversees the program, have since signaled that states will be allowed to access the funds.

But the exact process remains unclear.

For example, NTIA is nearly two months past its self-imposed March 11 deadline to issue guidance on the funds.

Lawmakers pressed Commerce Secretary Howard Lutnick on the delay on April 22 and April 23, but he offered few specifics, saying only that guidance would come within two months, and that states would be able to pursue “new and exciting things” with the money.

In the meantime, uncertainty is already affecting participation. State broadband offices in Colorado and New Mexico report that some providers who initially expressed interest may ultimately default on preliminary awards.

Rising costs are one factor: fiber suppliers say prices have jumped as much as 40% in recent weeks. A limited pool of skilled labor is another constraint, an issue the program’s non-deployment funds were meant to address through workforce development efforts.

Read the full article about rural broadband access by Jericho Casper at The Daily Yonder.